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US Dollar Forecast: USD Price Action Rangebound – Levels to Watch
USD PRICE OUTLOOK: US DOLLAR OSCILLATIONS YIELDS DXY INDEX TRADING RANGE
- USD value motion continues to gyrate throughout the confines of two main technical limitations
- The US Dollar and DXY Index may stay broadly rangebound as markets drift sideways
- US Dollar bears nonetheless appear in management however surging Treasury yields may help the USD
USD value motion has been pretty energetic over latest trading periods as indicated by measures of realized currency volatility. It seems that the US Dollar largely lacks route, nonetheless, judging by the horizontal pattern below growth. This corresponds with the DXY Index ping-ponging forwards and backwards between key technical help and resistance ranges.
DXY INDEX – US DOLLAR PRICE CHART: 4-HOUR TIME FRAME (08 JUL TO 13 AUG 2020)
The broad US Dollar Index is at present fluctuating close to the mid-point of its trading vary fashioned since 27 July. This broad trading vary is roughly outlined by the 92.50 and 93.90 value ranges, which can look to function technical limitations with potential of conserving USD value motion comparatively contained transferring ahead. The US Dollar additionally appears to be coiling between a short-term rising trendline set to conflict with a falling medium-term trendline.
USD PRICE OUTLOOK – US DOLLAR IMPLIED VOLATILITY TRADING RANGES (OVERNIGHT)
Putting deal with potential elementary catalysts that will carry sufficient credence to weigh materially on the US Dollar’s route brings our consideration to the DailyFX Financial Calendar. Excessive-impact occasion threat is scheduled for Friday’s trading session with month-to-month knowledge releases anticipated on US retail gross sales and client sentiment. One other doable driver of USD value motion might embrace surging Treasury yields.
Preserve Studying: EUR/USD Builds a Vary – Chart Levels Eyed
— Written by Wealthy Dvorak, Analyst for DailyFX.com
Join with @RichDvorakFX on Twitter for real-time market perception